Illumina (ILMN) has built itself into the unquestioned leader in genetic sequencing, but that hasn’t done much for the stock over the last two years or so, as shares have been stuck in a roughly $100 band between $270 and $380. Not only has COVID-19 created new short-term headwinds for the company, but growth-hungry investors are increasingly questioning where the next leg of growth will come from for this company.
Illumina has made it clear that they see a significant opportunity in diagnostics, and liquid biopsies in particular, and the rumored pursuit of GRAIL (GRAL) fits with the company’s stated strategy of positioning itself for that opportunity. While GRAIL would be an expensive deal, I think it would be a sound one for the long term, and I see a lot of long-term opportunity in next-gen sequencing-based oncology diagnostics. While Illumina shares are not quite as cheap as I like, the stock is in a ballpark where I think it’s at least worth monitoring the name.
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With Or Without Grail, Illumina Worth Watching At These Levels
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